CORMIDOM announces suspension of its mining operations

Santo Domingo.- In response to the extreme circumstances and unforeseen events that have impacted the company, shareholders of the Dominican Mining Corporation (CORMIDOM), which operates the Cerro de Maimón mine, have announced their difficult decision to officially halt the mine’s productive operations and move into a maintenance-only phase. This measure is aimed at preserving the safety of its employees and the company’s future operations.

Paul Marinko, the president of CORMIDOM, made the announcement, indicating that due processes have been initiated before the relevant authorities. Marinko expressed a continued commitment to a swift resolution through dialogue and mutual respect regarding the situation with the Union of Workers of the Cerro de Maimón Mine (Sitracema). He reaffirmed the company’s commitment to the town of Maimón and neighboring communities, expressing faith in the mediation of the Ministry of Labor.

Employees were informed of the decision via a company statement, which read, “After thirteen years of relentless effort, with its highs and lows, we have together built this mining family. It is with deep sadness that we inform you that the Corporación Minera Dominicana S.A.S (CORMIDOM) has suspended all mining production operations, transitioning into the maintenance phase.”

Since its inception in 2009, Marinko underscored that CORMIDOM has prioritized workers and their families in all its actions. The company respects and supports its employees’ union rights, maintaining a long-standing, open dialogue with Sitracema, leading to several agreements on salary improvements, health insurance, working conditions, education support, funeral expenses, and parental leave, among others.

The company has had a collective agreement with the union since 2010, renewed triennially. The most recent agreement dates back to 2020, during which the shareholders continued paying full salaries to employees despite an eight-month mine closure, resulting in RD$304,906,718.38 in payroll expenses during that period.

CORMIDOM, adhering to the collective agreement, paid RD$29,515,498.88 in bonuses for 2020 and a total of RD54,365,967.49 as bonuses between 2018 and 2022. Negotiations for a new collective agreement started in November 2022, despite the company’s five-month closure last year that significantly impacted its finances.

On April 27, 2023, CORMIDOM paid RD8,245,214 as a bonus for 2022 in compliance with the collective agreement. Marinko disclosed that the company’s financial situation had been such that shareholders had to send US$2,000,000 weekly, amounting to US$5,000,000 for the payment of salaries and other operating costs for that year. The global financial crisis has constrained the solidarity support of CORMIDOM’s shareholders, forcing them to close two mines in Australia.